A Forward PE Is Generally Based on the Projected

question 11

Multiple Choice

A forward PE is generally based on the projected:

• A)average earnings for the next five years.
• B)average earnings for the next three years.
• C)earnings for the upcoming quarter.
• D)earnings for the next year.
• E)stock price in one year.

Identify costs involved in the acquisition of fixed assets.

Understand how changes in estimates affect depreciation calculation.

Discriminate between capital and revenue expenditures.

Understand the accounting treatment for disposal of plant assets.

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